Korean Journal of Agricultural Science (농업과학연구)

Institute of Agricultural Science, CNU (충남대학교 농업과학연구소)
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The effect of Korea's policy to support the purchase of raw materials for export of livestock products

  • Jaesung Cho (Division of Animal and Dairy Science, Chungnam National University) ;
  • Sanghyen Chai (Farmer Service Center for FTA Implementation Research Associate, Korea Rural Economic Institute) ;
  • Hanpil Moon (Department of Agricultural Economics, Chonnam National University)
  • Received : 2022.07.18
  • Accepted : 2022.11.03
  • Published : 2022.12.01
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Abstract

The Livestock Raw Material Purchase Fund is a policy to increase the export of livestock products by providing loans to exporters of livestock products (including byproducts). The policy started in 2015 and the annual budget is about 26 billion won. However, a quantitative evaluation of policy effects has not yet been made. Therefore, in this study, the economic surplus of the policy was analyzed using the equilibrium displacement model (EDM). From the results of the welfare analysis, from 2016 to 2019, producer surplus in the chicken and duck market increased by KRW 70.9 billion, while consumer surplus decreased by KRW 70 billion. In other words, the total economic surplus of the chicken and duck market increased by about one billion won during the same period due to the increase in export demand according to the policy. Therefore, the Livestock Raw Material Purchase Fund can be viewed as a policy to maintain and increase export demand for export livestock products and to improve the economic surplus of the livestock product market. Also, since the policy is based on loans, it does not place a burden on the government's finances. Therefore, this policy should continue in the future.

Keywords

Acknowledgement

본 논문은 한국농촌경제연구원(KREI)의 지원으로 수행되었습니다(2019년 FTA 국내보완대책 농업인지원 성과 분석 보고서) .

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